Overtime template setting & configuration

Overtime template is basically a template that has one or rules that defines under what conditions and at what rate employee overtime is paid.

Accurately calculating your employee's work hours is crucial to running a successful business. It shows your employees that you appreciate their work and want to keep them as part of your team. However, calculating their regular and overtime hours can be a difficult task.

We've developed an easy-to-use Overtime Capability to help you comply with your company policies or country's legal requirements. You can set overtime in different ways to ensure you pay your employees correctly. This makes managing overtime a lot simpler!

Prerequisite

Make sure you have created Payroll Category / Export code for your overtime by going to setting > payroll > Pay categories / Export Codes

Read this for more details about pay categories

Overtime Templates

ClickTime currently offers 2 different overtime templates (Daily & Weekly)

Daily Template

Weekly Template

Custom Template

Daily Template

The employee is paid overtime if they work over the number of hours specified, during the time span specified.

You can include multiple rules & conditions within the template. For example, one condition could pay overtime at 1.5x regular pay for hours worked over 8, and a second could pay overtime at 2x regular pay for hours worked over 12

Each condition can apply to one of the following:

All days or to selected day of the week (for example, Monday & Fridays only)

Daily Overtime Calculation Methods:

You can choose between two methods for calculating daily overtime to best suit your organization’s needs: Per Shift and Midnight to Midnight.

• Per Shift:

This method of calculating overtime is best suited for companies where employees work in shifts. The overtime accumulator resets to zero after each shift. See below how (Per Shift) works

• Each shift worked during the day will be treated as its own separate entity. This means that each shift will be considered individually, without combining hours from other shifts worked on the same day.

• If an individual shift exceeds the specified overtime threshold specified on the overtime template, the system will automatically allocate and credit the overtime hours accordingly.

• Midnight to Midnight:

With this option selected, the system calculates overtime based on a 24-hour window, regardless of when shifts start and end. Overtime is calculated from 12:00 AM (midnight) to 11:59 PM (midnight). See below how (Midnight to Midnight:) works

• The system accumulates all shifts worked during this period and checks if the total hours exceed the daily overtime threshold.

• For overnight shifts spanning two days, the hours are split between the two days, and overtime is credited to the day the shift started.

Weekly Template

The employee is paid overtime for hours worked beyond a number you specify in a single work week.

You can include multiple conditions, but each overtime hour is only paid overtime based on one condition. For example, one condition could pay overtime at 1.5x regular pay for hours worked over 40, and a second could pay overtime at 2x regular pay for hours worked over 50.

Note#1

Overtime is calculated based on a 7 days a week (eg: Mon-Sun).

Your company’s work week is defined by the “Company Start Day of Week” on Setting > App Setting > General Setting

Note #2

Note: Hours are considered part of a work week if the clock-in occurs within that work week.

Example: If the work week starts on Monday and ends on Sunday, an employee who clocks in at 11:00 PM on Sunday, January 5th, and clocks out the next day at 2:00 AM, will have three hours counted towards the work week for the purpose of overtime calculation.

Custom Template

Overtime is paid for time worked above the daily overtime limit. Time is also paid for time worked above the weekly overtime limit as long as that time is not also being paid as daily overtime.

Multiple Rule for Daily & Weekly

When you create an overtime template, you can create multiple weekly or daily overtime rules or combine both daily & weekly rules within the same overtime template. For example, First 2 Hours after 8 Hours to be paid time & half and over 10 hours to be paid be paid & considered double pay. See below example

Overtime Setting

Overtime setting can be found on Settings > Payroll > Overtime & Pay Templates

Steps needed to the overtime calculations

there are 3 simple steps you will need to take in order to start the overtime calculation for you employees